Chenzhi Light Quantization and Changan Auto Launch Magnesium Alloy Industrialization for EVs

[Magnesium Ingot in the Doldrums, Demand Caps Rebound Room] This week, mainstream quotations for magnesium ingot in major producing areas were 15,800-15,900 yuan/mt, up 100 yuan/mt WoW, while FOB prices in the overseas market weakened in tandem. The Chinese market consolidated at lows overall, with smelting costs providing bottom support and leaving limited further downside room. However, producers’ hold-back-from-selling sentiment showed signs of easing, and low-priced supplies emerged. Downstream users and traders had insufficient orders and remained cautious in procurement, leaving overall trading sluggish. On the export front, the overseas summer break has not yet ended, with limited inquiries from the overseas market and evident push for lower prices from buyers outside China. Upstream, dolomite supply channels were switched, keeping raw material supply ample and prices stable. Downstream magnesium powder and magnesium alloy followed the magnesium ingot in the doldrums, with the magnesium alloy market showing supply-demand weakness and processing fees under pressure. In the short term, magnesium ingot lacks upward drivers and is expected to continue the pattern of moving sideways.

[SMM Magnesium Weekly Inventory Flash] This week social inventory decreased by 4.0% WoW, showing a continued destocking trend. Magnesium ingot prices drifted lower this week, with no significant recovery in downstream new orders and ex-China demand. Traders' willingness to purchase and stockpile was low, and the overall market lacked growth momentum from new orders. However, there were still small amounts of spot orders for rigid demand from downstream and traders. Amid sluggish market trading, this demand did not translate into new purchases but was mainly fulfilled through destocking existing inventories. Meanwhile, on the supply side, impacted by ongoing maintenance and losses, the inflow of new spot magnesium into the market was limited, further driving the gradual destocking of social inventory.

[Magnesium Ingot Market Tug-of-War and Stalemate: Cost Support Coexists with Weak Demand] Magnesium prices held steady today. Tightening supply of low-priced goods supported a slight upward shift in the transaction center, and some producers tentatively raised prices. However, downstream buyers and traders mainly adopted a wait-and-see stance, with only sporadic just-in-time procurement. Rising costs and sustained losses strengthened their willingness to hold prices firm. In the short term, magnesium prices lacked upward momentum while the downside was limited, continuing the pattern of moving sideways in a narrow range.